Dismay as Halifax cuts current account interest

Halifax cuts high-interest rates and increases overdraft rates

HALIFAX has slashed the rates on some popular high-interest current accounts by more than a percentage point while increasing overdraft rates.

The decision to raise overdraft rates comes despite the fact that the Bank of England has been cutting interest rates.

Nationwide, the UK's largest building society, cut interest rates on credit balances by a quarter point last week following the 0.25 percentage point cut to Bank rate last month. However, it did not reduce overdraft rates accordingly.

Intelligent Finance, owned by HBOS, Lloyds TSB and Norwich & Peterborough building society also cut rates but failed to pass on the cut to customers who use their overdraft while cutting rates on credit balances.

Cumberland, Norwich & Peterborough and Leeds building societies have cut credit interest rates by up to 0.30%.

Halifax cut the rate on its Ultimate Reward Account and High Interest current account from 6.17% to 5.12%, paid on